The markets opened lower this morning to start the new year with corn down 4, soybeans down 20 and wheat down 5.
The market has been waiting on rains for Brazil and they are almost certainly coming! All models are aligned with the driest areas of central Brazil looking to receive blanket rains of over 3 inches across the next week with some areas in store for more. This may be coming too late for some of the earlier planted soybeans but overall this rain is very timely. As we have seen many a time the crops can recover surprisingly well, and we would expect no different this time.
The markets ended 2023 with very little to be excited about and it appears that 2024 is at least going to start that way. The commodity markets have a lot of bearish news feeding them right now and it may be a while before we find something to change that. Producers should be talking with their buyers and looking for opportunities to add small premiums to sales with option strategies. The CBOT doesn’t appear that it is going to get exciting and with large US and world stocks, basis levels aren’t going to do much work either.
Have a Safe Day!